Taxing Entity Committee
Redevelopment Agency of
Tremonton City, Utah
Minutes
June 23, 2021
3:00 p.m.
Tremonton City Council Chambers
Tremonton City Hall
102 South Tremont Street
Tremonton, Utah 84337

1. Welcome

Acting Chairman Rohde called the meeting to order at 3:03 p.m. and welcomed those present. The meeting was held at the Tremonton City Council Chambers on June 23, 2021 at 3:00 p.m.

2. Introduction of Committee Members

 

a. Identification of voting members of the Committee and which taxing entity that they represent

The following Taxing Entity Committee Members were in attendance: Board Member Corey Thompson representing Box Elder School District, Board Member Jeff Scott representing Box Elder County, Board Member David Forsgren representing Bear River Water Conservancy District and Box Elder Mosquito Abatement, Director Shawn Warnke Tremonton City, Councilmember Bret Rohde Tremonton City, and Linsey Nessen TEC Secretary.

Excused: Scott Jones, Utah State Office of Education, Brett Baltazar, Utah State Office of Education, Lyle Vance, Tremonton City, Rodney Cook, Box Elder School District, Steve Carlsen, Box Elder School District, and Mayor Roger Fridal, Tremonton City.

3. Approval of Minutes – June 10, 2020

Motion by Board Member Scott to approve the minutes of June 10, 2020. Motion seconded by Board Member Forsgren. Vote: Board Member Baltazar – absent, Board Member Carlsen – absent, Board Member Cook – absent, Board Member Forsgren – aye, Chairman Fridal – absent, Board Member Jones – absent, Acting Chairman Rohde – aye, Board Member Scott – aye, Board Member Thompson – aye, and Board Member Vance – absent. Motion approved.

4. 2020 Tax Increment and Distribution – Shawn Warnke, RDA Executive Director

a. Tremont Center Community Development Project Area

1. Tremont Center, LLC

Director Warnke stated this is the only active project area in Tremonton.

The RDA received a check for $143,000 and those funds are committed by an agreement to reimburse the developer for projects they have already completed within the project area. The total amount distributed to date to the developer is $505,000. The developer has demonstrated that they have about $900,000 worth of eligible expenses that the RDA would reimburse them so we are getting close to completing reimbursement on the actual expenses. There is a cap of $1.8 million or the actual expenses and we do anticipate they will continue to make improvements within the project area and work towards receiving that cap. Most notably, one of the largest expenses they have done is burying the central canal and also burying the power line along Main Street in that frontage.

5. 2020 Annual Agency Reports – Shawn Warnke, RDA Executive Director

a. Tremont Center Community Development Project Area

The base tax year at the project area’s inception had a taxable value of $10 million within the project area. So far, we are five years into the project and the taxable value that has been generated is $16 million. The project area is moving forward but we are quite a ways off the estimates of where we expected to be at this point. The increment has been done in big chunks such as the jump from $3 million in 2016 to $9 million in 2017 and then essentially stayed the same through 2018 and then jumped another $6 million in 2019 and remained relatively the same in 2020.

There continues to be development activity going on in the project area that we anticipate will continue to bring more taxable value. We do see a little commercial development occurring, but as we understand, getting financing through the pandemic has been difficult for some commercial developments. There is a building beginning to be erected currently that is a commercial building. Crump Reese Motor Company continues to remodel and improve their property and building, which was done through the pandemic.

We are starting to see a lot of housing development occurring within the project area, but as it relates to taxable value and increment, residential housing, if it is a primary residence, receives an exemption and is only taxed at 55% of the market value.

Part of this project area included the taxing entities entering into interlocal agreements that delivers 25% of the tax increment through the life of the project area to the entities. For example, Box Elder County received $7k and the Box Elder School District received $30k this past year. Tremonton City received $10k and the Bear River Water Conservancy District and Box Elder Mosquito Abatement received a combined amount of just under $2k.

During a special legislative session in 2020, there was a law adopted by the Legislature that allowed for project areas to continue for two additional years if there were findings made that the pandemic effected the project area and that was certainly the case for this project area. The Tremonton RDA did extend the project area for those two additional years. Growth has been flat this last year or two and, coming out of this pandemic, we are optimistic that we will catch up. So the project area will be 17 years instead of 15 years, unless we hit the cap of increment received by the RDA, which is $4.3 million, at which point the project would end.

In order for Crump Reese to develop their property, we needed to reconfigure the road so we extended 600 West, which essentially dead-ended into Crumps property previously. That extension of 600 West was in part needed to create a collector road but also because we eliminated what was 650 West, which essentially bisected property that Crumps owned and wasn’t very conducive for the dealership. There was a land swap between the RDA and Crump Reese and the RDA paid for the new road. This helped the City and the RDA on multiple levels such as circulation and economic development.

The RDA acquired a few homes within this project area and demolished them in order to redevelop the area. The RDA also did a beautification project across from Midland Square where a mural was painted last fall to honor Gail Halverson. The event recognized Gail, who is from the area, as part of his 100 year birthday celebration. This was a great project to beautify the streetscape here in Tremonton.

Some of the housing projects going on in the project area include a townhome project right off Main Street, but the most significant housing project is the large development of 304 units on 16 acres right behind Shopko and some of those commercial buildings within the Tremont Center. It is currently under construction and they have already pulled 234 building permits. Most of the underground work is done, but they have delayed strategically the construction based on the price of lumber but at this point they are moving forward and in the next few weeks they will bring a crew in and start making progress. Board Member Scott asked if these units will be leased or sold. Manager Warnke stated they are apartments and will be owned and maintained by Wasatch Development. This development is also within an Opportunity Zone, which encourages capital gains deferral and is helping the developer bridge the gap for this project as they are not receiving a tax increment from the RDA.

6. Questions or comments from TEC Committee members

Board Member Scott asked what is happening with the vacant Shopko building. Acting Chairman Rohde said it is for sale but just sitting empty at this point. Board Member Scott said the Shopko building in Brigham is sitting vacant also but the one in Logan was purchased by WinCo.

7. Adjourn

Motion by David Forsgren to adjourn the 2021 Taxing Entity Committee meeting. Motion seconded by Board Member Scott. Vote: Board Member Baltazar – absent, Board Member Carlsen – absent, Board Member Cook – absent, Board Member Forsgren – aye, Chairman Fridal – absent, Board Member Jones – absent, Acting Chairman Rohde – aye, Board Member Scott – aye, Board Member Thompson – aye, and Board Member Vance – absent. Motion approved.

The 2021 Taxing Entity Committee Meeting adjourned at 3:29 p.m.

The undersigned duly acting and appointed secretary for the Taxing Entity Committee hereby certifies that the foregoing is a true and correct copy of the minutes of the Taxing Entity Committee Meeting held on the above referenced date. Minutes were prepared by Linsey Nessen.

Dated this day of , 2022.

____________________________
Linsey Nessen, Secretary